2016 (7) TMI 1581 - HC - Income Tax

Exemption u/s 11 - Charitable purpose u/s 2(15) - Income from property held for charitable or religious purposes - whether the provisions of Section 11(4A) were attracted to the assessee s case - whether by rendering specific services to members and non-members for a fee, a trade, professional or similar association can be said to be carrying on a business activity? - HELD THAT - It is not in dispute that the issues raised in these appeals stand covered in favour of the Assessee for the earlier Assessment Years 2012 (11) TMI 429 - DELHI HIGH COURT as held it not proper to characterise the activities of the chamber as activities amounting to a business in the generally understood sense of the word, the most important feature of business being profit motive. It has not been suggested by the income tax authorities that the activities carried out by the assessee chamber were propelled by any profit motive. In such circumstances, it is proper to view the activities as driven by a charitable motive in the sense in which a charitable purpose is defined in Section 2(15). In this view of the matter, the provisions of Section 11(4A) are not attracted to the present case and a remand to the AO for finding out whether the activities were incidental to the objectives of the trust and separate books of accounts were maintained for such business was unnecessary - Decided in favour of the assessee.

Summary

The Delhi High Court allowed the condonation of delay in re-filing the appeal. The issues raised in the appeals were already decided in favor of the Assessee for earlier assessment years. Therefore, the appeals were dismissed. (2016 (7) TMI 1581 - DELHI HIGH COURT)